Our view: The deal is negative in the near term as SILs PBT will reduce by Rs 1.2bn (at 6% income yield on Rs 21bn cash outgo) whilst new business PBT of Rs 664mn will accrue. Net basis PAT will be lower by Rs 314mn (Value - Rs 11.1bn at 35x target P/E, 1.9% Mkt cap). Over longer term with better visibility emerging on Public/Private electrification capex, improving liquidity scenario in the overall market & relative easing of global trade tensions, this acquisition will gear the company to cater to local as well as global markets. EVENT: Siemens has entered into a definitive agreement for an all cash debt free acquisition of 99.22% stake in Delhi based C&S; Electric Ltd. at an EV of ~Rs 21bn ($297 million). Revenue/PAT of the C&S; for FY2019 was Rs 12,411/329.3mn. As on Mar-19, C&S; had networth of Rs 5,100mn and total debt outstanding of Rs 2,668mn.